How Much More Expensive Is It To Have A Bad Credit Score?

Most people know that having a less-than-perfect credit score makes it more difficult to get a loan. And for those who can manage to be approved for a loan or new credit card, it also means they will end up with higher payments.

The folks at SmartMoney broke down the negative impact of low credit scores by the three main lines of consumer credit — car loans, credit cards, and mortgages.

For car loans, someone with a credit score of between 680 and 739 will likely pay 4.5% APR on their loans, compared to only 3.2% for people with scores above the 740 threshold. Meanwhile, people with sub-680 scores can pay anywhere from 6.5% to 12.9% APR for the same loan.

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Resources for YOU:

• Bad Credit Resources
• Poor Credit Loans

Discover Financial Q2 Profit Slips, But Lending Rises

Discover Financial Services (DFS) said before the market opened that second-quarter profit was down a bit from the same quarter last year as it set aside more money to cover bad debts, but roughly in line with analyst projections.

Investors ignored the profit miss and bid shares up as much as 3% early amid a broad market rally, partly in reaction to rising hopes the Federal Reserve will agree to extend stimulus measures to bolster the U.S. economy as Europe remains mired in debt crisis. The Fed's regular meeting is scheduled for Tuesday and Wednesday.

Discover shares rose 2.7% to 33.74 in afternoon trading.

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Resources for YOU:

• Bad Credit Resources: Credit Cards For Bad Credit
• Bad Credit Resources

Why You Need to BORROW Money to Improve Your Credit Score

When most people think about improving their credit score, they think of paying down their debt and even going so far as eliminating their loans and credit cards so they cannot accumulate more debt. In fact, I just recently read some debt management advice that suggested credit card holders pay off their cards then cut them up and close the accounts. That's bad advice.

The first step (paying down debt) is a good practice to improve credit scores. No disputing that. Creditors like to see lots of "lending room" in your debt-to-income ratio -- they don't like to see maxed-out credit cards.

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Resources for YOU:

• Bad Credit Auto Loans
• Bad Credit Home Loan

Romney Says That Without Him, US Will Become ‘Like Europe’

Mitt Romney worries that if he doesn’t make it to the White House, the United States will become “like Europe with higher deficits,” the Republican candidate said in an interview on CSPAN, set to air this evening.

“If I were not to … get elected, we would instead in my view become more like Europe with higher deficits, with a debt that could put us in a Greece or Spain or Italy-like circumstance, with chronic high unemployment, with low wage growth and with a military that gets slowly but surely hollowed out so it could pay for the various programs that government would try to keep in place,” Romney told Steve Scully. “I mean, I see America in a declining position under this president.”

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Resources for You:

• Credit Cards For Bad Credit
• Credit Loans For Bad Credit

30-year mortgage rate rises to 3.71%

WASHINGTON – Average rates on fixed mortgages rose this week, the first increase in seven weeks. But mortgage rates remain near historic lows, boosting prospects for home sales this year.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan increased to 3.71%. That's up from 3.67% last week, the lowest since long-term mortgages began in the 1950s.

The average rate on the 15-year mortgage, a popular refinancing option, rose to 2.98%. That's up from 2.94% last week, also a record low.

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Resources for YOU:

• Bad Credit Resources
• Credit Cards For Bad Credit

How to Start Building Your Credit

Acquiring a secured credit card is a solid option for those people who are attempting to rebuild their credit or begin from scratch. You don’t need very good credit at all to obtain one of these cards, which explains why so many people decide to use them to acquire their credit standing back on track. These cards can be valuable tools when it comes to building credit, and you should consider you get one knowing that you're going to need to borrow money in time. Most people do not think that they will have to have an optimistic credit score in the near future, however, you will need to have solid credit to acquire an auto or house anytime in the future. Even if you are just looking to rent an apartment, you are going to have to have a fairly decent credit score. Here are three reasons as to why a secured card might be a perfect choice for you:

Read more about Secured Credit Card - How to Start Building Your Credit

Resources for YOU:

• Debt Consolidation
• Credit Cards Online

Starbucks expanding effort to help businesses create jobs

Starbucks is expanding an unusual effort to create jobs through small business loans, which the company launched last fall after chief executive Howard Schultz lambasted politicians for not doing more to fix the economy.

So far the Create Jobs for USA program has raised about $11.5 million, including about $2.8 million from customers who bought brightly colored wristbands along with their lattes or donated to the program online.

Starbucks says its analysis shows the money raised so far could create or retain about 4,000 jobs.

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Resources for YOU:

• Secured Credit Card
• Payday Loans
• Debt Consolidation

10 Ways to Increase the Value of Your Home

In a dour housing market, wouldn't it be nice to know that your remodeling project would pay off when you went to sell the property? Remodeling Magazine evaluated the top remodeling projects, how the cost-to-value has changed since the housing market implosion, and which projects are still worth the investment. Using the magazine's "Cost Vs. Value Report for 2008-2009," let's look at some of the best projects you can undertake and recoup the majority of your cost.

Upscale Projects

• Siding Replacement (fiber-cement or foam-backed vinyl). With the economic slump, home buyers aren't being dazzled by bells and whistles as much as they are improvements that will ensure lower repair and utility bills. Although replacing current siding with fiber-cement has lost value from 2007, it still nets an astonishing 87% ROI. If you prefer a foam-backed vinyl product replacement instead, you can still look to recoup 80% of your cost.
• Window Replacement (vinyl or wood).  Windows are not only an aesthetic feature. For most homeowners, they represent one of the easiest ways to lower home heating and cooling bills. By replacing your current windows with more efficient vinyl or wood ones, you can save on your utility bills, attract future home buyers and net a nearly 80% (vinyl) or 77% (wood) return on your investment.

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Resources for YOU:

• Secured Credit Card
• Debt Consolidation

Senator Reid makes new offer on US student loans

WASHINGTON/LAS VEGAS, June 7 (Reuters) - U.S. Senate Democratic leader Harry Reid on Thursday offered a new way to avert by the end of this month a doubling of the 3.4 percent interest rate on federal student loans.

A Senate Republican leadership aide said the proposal would be reviewed and that it may represent progress toward ending an election-year standoff that has seen each side accuse the other of bargaining in bad faith.

President Barack Obama, speaking to about 2,500 people at the University of Nevada Las Vegas, encouraged lawmakers to come to an agreement, saying, "So I just said to Congress, get this done ... This is not complicated."

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Resources for YOU:

• Secured Credit Cards
• Instant Approval Credit Cards

Student loans: Will more transparency help?

Ten U.S. colleges and universities have committed to provide more information to students about tuition and other costs, including estimated monthly loan payments after graduation, as part of a federal push to improve disclosure to help prevent financial-aid recipients from overextending themselves, the White House said.

Leaders from those institutions, which include the state university systems in Maryland, Massachusetts, New York and Texas, were scheduled to meet Tuesday in Washington with Vice President Joe Biden, Education Secretary Arne Duncan and Richard Cordray, director of the Consumer Financial Protection Bureau to discuss financial aid transparency.

The White House said more disclosure is key to making college more affordable.

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Resources for YOU:

• Car Loans
• Credit Cards For Bad Credit

USA Funds presents Excellence in Debt Management awards to three schools

INDIANAPOLIS, June 5, 2012 -- /PRNewswire/ -- USA Funds® has announced the recipients of its 2012 Excellence in Debt Management Awards. USA Funds recognized the following three postsecondary institutions for their efforts to promote financial literacy and help their students minimize and manage their student loan debt:

Shaw University, Raleigh, N.C. This private, four-year university pursues a variety of activities to enhance student retention and curb student loan defaults. It conducted a survey during freshman orientation to identify students who were at risk of dropping out of school and in need of academic or social intervention. Based on the survey results, the university launched a pilot mentoring program. In conjunction with that program, the university also presented 27 financial literacy and financial aid workshops during the past academic school year to 625 students. The university also conducts face-to-face exit counseling sessions for graduating seniors to provide information about their lenders, various repayment options and information about the amount of debt that they have incurred while in school. Following graduation, Shaw University conducts aggressive communication campaigns to former students who have fallen behind in the repayment of their student loans. These efforts include contacting student loan borrowers, beginning when a former student is more than 30 days past due on a student loan payment, and conducting a monthly telephone blitz to reach borrowers whose loan payments are more than 180 days past due. As a result of these activities, Shaw University reports that its 2010 draft cohort default rate fell to 13.2 percent, down from its official 2009 rate of 22.6 percent. The award includes a $15,000 USA Funds grant to support student scholarships at Shaw University.

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• Credit Repair
• Bad Credit Car Loans
• Secured Credit Credit Cards

4 indicted in Chicago, Country Club Hills mortgage fraud scheme

Four people were indicted Monday for allegedly obtaining $16.2 million in fraudulent mortgage loans on properties in Chicago and Country Club Hills.

Charged with mail fraud and bank fraud by the U.S. Attorney's office in the indictment are loan originator Hakeem Rashid, 39, of Miami and formerly a Chicago-area resident; mortgage broker Kareem Broughton, 39, of Chicago; attorney Marguerite Elise Dixon-Roper, 46 and also known as Elise Dixon, of Darien; and Jada Elaine Lukas, 52 and also known as Sophia Youssef, of Chicago, a loan processor.

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Resources for YOU:

• Credit Cards For Bad Credit
• Secured Credit Card
• Payday Loans For Bad Credit

As prepaid cards' popularity rises, better be wary of fees

New types of prepaid cards are rolling out at a brisk clip, and plenty of people will sign up despite the fees.

In general, prepaid cards are gaining popularity. And some, like American Express, are going after young professionals, said Beverly Harzog, credit card expert for Credit.com.

The marketing push is to offer a piece of plastic that's an alternative to a traditional checking account — and plastic that generally can't be overdrawn.

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Resources for YOU:

• Apply for credit card with bad credit
• Bad Credit Car Loan